User Account

All Pages

Calculate stock a beta

Assignment Help Finance Basics
Reference no: EM132534697

1. Your investment club has only two stocks in its portfolio. $30,000 is invested in a stock with a beta of 0.7, and $55,000 is invested in a stock with a beta of 1.4. What is the portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.

2. AA Corporation's stock has a beta of 0.4. The risk-free rate is 2%, and the expected return on the market is 10%. What is the required rate of return on AA's stock? Do not round intermediate calculations. Round your answer to one decimal place.

3. Suppose rRF = 4%, rM = 9%, and rA = 12%.

a. Calculate Stock A's beta. Round your answer to one decimal place.

b. If Stock A's beta were 2.4, then what would be A's new required rate of return? Round your answer to one decimal place.

4. Stock R has a beta of 1.4, Stock S has a beta of 0.75, the expected rate of return on an average stock is 9%, and the risk-free rate is 7%. By how much does the required return on the riskier stock exceed that on the less risky stock? Do not round intermediate calculations. Round your answer to two decimal places.

5. LL Incorporated's currently outstanding 8% coupon bonds have a yield to maturity of 5.7%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 25%, what is LL's after-tax cost of debt? Round your answer to two decimal places.

Reference no: EM132534697

Questions Cloud

What will be the annual amount due : What will be the value of the mortgage loan at the end of the 2nd year if the instalment for the 2nd year already have been paid?
What you have learned about the theories to case study : Complete the Sociologic Sciences Interactive Case Study following the readings and presentation for this week. Associate what you have learned about.
Create podcast about syria and isis : Create a podcast about Syria and ISIS, synthesizing facts into an informative narrative using appropriate scholarly resources and reasoning in the development
OPMT 1106 Quality Assurance Fundamentals Assignment : OPMT 1106 Quality Assurance Fundamentals Assignment Help and Solution, British Columbia Institute of Technology - Assessment Writing Service
Calculate stock a beta : Your investment club has only two stocks in its portfolio. $30,000 is invested in a stock with a beta of 0.7, and $55,000 is invested in a stock with a beta
Why think the iasb decided on the treatment : Why you think the IASB decided on the treatment of "Loss on Discontinued Operations" and "Non-controlling Interest Allocation" that they did.
Discuss potential barriers to learning : Describe learning theories as they relate to your personal motivation to successfully increase your nursing knowledge. Discuss potential barriers to learning.
Most important in presidential leadership : In your opinion which one of these factors is most important in presidential leadership?
What company return on equity using the dupont formula : What is this company's return on equity, using the DuPont formula? A company has sales of $132 million, net income of $24 million, a total asset turnover.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd